Fundamentals of Taxation 2025 Release Cruz Solution Manual
Solution Manual for Fundamentals of Taxation 2025 Release By Ana Cruz, Michael Deschamps, Frederick Niswander, Debra Prendergast and Dan Schisler, ISBN-10: 126623439X, ISBN-13: 9781266234392
Table of Contents
1 Introduction to Taxation, the Income Tax Formula, and Form 1040
2 Expanded Tax Formula, Form 1040, and Basic Concepts
3 Gross Income: Inclusions and Exclusions
4 Adjustments for Adjusted Gross Income
5 Itemized Deductions
6 Self-Employed Business Income (Line 3 of Schedule 1 and Schedule C)
7 Capital Gains and Other Sales of Property (Schedule D and Form 4797)
8 Rental Property, Royalties, and Income from Flow- Through Entities (Line 5, Schedule 1, and Schedule E)
9 Tax Credits (Form 1040, Lines 19, 20, 27 through 29, and 31, Schedule 3, Lines 1 through 14)
10 Payroll Taxes
11 Retirement and Other Tax-Deferred Plans and Annuities
12 Special Property Transactions
13 At-Risk/Passive Activity Loss Rules and the Individual Alternative Minimum Tax
14 Partnership Taxation
15 Corporate Taxation
CHAPTER 1 – SOLUTIONS
END OF CHAPTER MATERIAL
Discussion Questions
1. (Introduction) Give a brief history of the income tax in the United States.
Answer:
The first federal income tax was enacted in 1861 to help finance the Civil War and was discarded soon thereafter. In 1894, another income tax was promulgated by Congress to raise additional tax revenue and to expand the sources of revenue. In 1895, the Supreme Court ruled that the federal income tax was unconstitutional. In 1913, the sixteenth Amendment to the U.S. Constitution was enacted. This amendment gave Congress the power to levy and collect taxes. In 2022, the federal government collected about $2.28 trillion in individual income taxes.
Feedback:
Learning Objective: 01-01
Topic: Tax Rate Structures
Difficulty: 1 Easy
EA: No
2. (Introduction) For fiscal year 2023, what proportion of individual income tax returns was electronically filed?
Answer:
In fiscal year 2023, electronically filed tax returns were about 90.7% of total returns.
Feedback: Calculated from Table 1-1
Learning Objective: 01-01
Topic: Tax Rate Structures
Difficulty: 2 Medium
EA: No
